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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (16983)	11/1/1998 2:16:00 PM
From: out_of_the_loop	Read Replies (1) \| Respond to of 53068

Most excellent review, sir!

To: Ron McKinnon who wrote (16983)	11/1/1998 6:57:00 PM
From: Iceberg	Respond to of 53068

>Oct 9 >the Fed "leaks" that they may well finally drop rates to catch up with real world market rates Ron, Here's a "cut-and-paste" from a private e-mail I sent to a good friend of mine yesterday... ---------------- What happened after the close on the 8th and the open of the 9th [or thereabouts] that would have caused the market to take off across a broad spectrum of stocks? I don't have a clue! I can't recall any specific news during that time frame. What ever happened, it seems to me that it was no accident. The feds lowered interest rates in their "surprise" move exactly one week later, on the 15th. Do you suppose word leaked out a week ahead of time that rates would be lowered and people acted on the rumor? Just guessing, because I don't know. What ever it was, I missed out on it. -------------- - - and from a follow-up e-mail I sent to my friend later in the day... ------------- The time to have gone long was Oct 9th. Whether or not it's still time to go long depends upon what investors/traders/funds and the rest of the world seems to know that I don't know. Maybe the market rise during the past 3 weeks is some sort of "mass psychological event" ------------- What I figure happened was that the Fed "leak" about interest rates [I assume there probably was a leak] triggered a massive shift in market psychology. So on Oct 9th, the market turned...just like a shifting school of fish. Thanks for your colorful, in-depth reconstruction of events that occurred around the 8th and 9th. You vividly captured the essence of what,IMO, must have happened. I would call it (for the lack of a better term) a "mass psychological event". I think it was a classic event, whether or not it might have been triggered by a Fed leak and the prospects of lowering interest rates. Great post! Ice